Despite a flurry of recent emails sent around Lowndes and Lanier counties implying the opposite, Farmers and Merchants Bank is conducting business as usual.

With seven branches under the charter of the main branch in Lakeland, Farmers and Merchants operates six locations in South Georgia and one in Covington, in the Atlanta metro area.

According to a recent order issued by the Federal Deposit Insurance Corporation (FDIC), Farmers and Merchants “engaged in unsafe or unsound banking practices” and ordered a consent agreement with a specified list of violations and mandates to correct them.

According to FMB Chief Executive Officer Jeff Parrish, the issues date back to July 2008 when the FDIC conducted an exam on the bank and found issues with loans from the Covington branch.

Parrish said the woes of the Atlanta real estate market are well known and have caused issues for a number of banks, but FMB took steps to correct the issues last year.

“We addressed it before the exam and have already taken action to correct the issues,” said Parrish.

Primarily, bank loans for construction acquisition and development have not done well in the last year. Builders who want to construct speculative houses or buy lots in new subdivisions are too high risk, particularly in the Atlanta area, in the current recession. Parrish said FMB wants to emphasize that they are conducting business as usual and still making loans, including real estate loans, at the South Georgia branches.

According to Parrish, all banks in the Atlanta area have been affected adversely by the real estate downturn, but it’s important for customers to remember that their deposits are insured by the FDIC, and no customers have lost any money.

Parrish said FMB is complying with the consent order and has already proactively addressed the issues, but despite the woes created by one of its seven branches, FMB’s operations are not affected in South Georgia.